USD/JPY remains confined in a range around mid-107.00s

A combination of diverging forces failed to provide any meaningful impetus to USD/JPY.
The upbeat market mood undermined the safe-haven JPY and helped limit the downside.
Concerns about surging coronavirus cases might continue to keep a lid on any move up.

Haresh Menghani FXStreet

The USD/JPY pair lacked any firm directional bias and remained confined in a narrow trading band, around mid-107.00s through the early European session. A combination of diverging forces failed to assist the pair to capitalize on the previous day's modest uptick and led to a subdued/range-bound price action on the last trading day of the week.

Optimism over a potential COVID-19 vaccine, coupled with reviving hopes of a V-shaped global economic recovery remained supportive of the upbeat market mood. Friday's upbeat China Caixin Services PMI added to Thursday's stronger-than-expected US monthly jobs report and offered further evidence that the worse of the coronavirus pandemic was probably over.

The risk-on flow undermined the safe-haven Japanese yen and extended some support to the USD/JPY pair. However, the ever-increasing number of coronavirus cases fueled concerns about renewed lockdown measures to contain the spread. This, in turn, held investors from taking excessive risk and kept a lid on any strong gains for the major, at least for the time being.

Traders also seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines amid relatively thin liquidity conditions. Given that the US markets will remain closed in observance of Independence Day, the USD/JPY pair seems more likely to prolong its sideways consolidative price action and end with modest gains for the second consecutive week.

Technical levels to watch

USD/JPY

Overview
Today last price	107.5
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	107.5

Trends
Daily SMA20	107.4
Daily SMA50	107.39
Daily SMA100	107.89
Daily SMA200	108.4

Levels
Previous Daily High	107.72
Previous Daily Low	107.33
Previous Weekly High	107.45
Previous Weekly Low	106.08
Previous Monthly High	109.85
Previous Monthly Low	106.08
Daily Fibonacci 38.2%	107.57
Daily Fibonacci 61.8%	107.48
Daily Pivot Point S1	107.32
Daily Pivot Point S2	107.13
Daily Pivot Point S3	106.93
Daily Pivot Point R1	107.71
Daily Pivot Point R2	107.91
Daily Pivot Point R3	108.1

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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